THE DUMB MONEY IS BULLISH

The following strategy comment comes courtesy of Liz Ann Sonders of Charles Schwab:

“As you can see, a yawning 50-point gap opened at year-end between the two measures of confidence, with dumb money optimism having soared, while smart money optimism became decidedly more subdued. The good news is it’s starting to narrow, but this is a potential warning of some market vulnerability, which would likely be necessary to close this gap further.”